Abstract
The aim of the study is to examine the association between board characteristics and Shariah Committee with risk management committee (RMC) whether it is combined or separate with audit committee in the Malaysian Islamic banks. This study employs secondary data collected from the Islamic banks' annual reports for the period 2006-2009. It was found that the existence of RMC is significantly associated with proper governance at the board of directors' level and thus, an effective and adequate Board member with larger size tends to have greater oversight monitoring function towards the company's activities. It is easier to establish a separate risk management committee (RMC) and with greater levels of resources offered by larger boards, there would be less pressure to establish a combined risk management and audit committee.